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Data were gathered from a national survey of quality managers to examine the obstacles associated with managing a successful quality transformation. Factor analysis on managers ratings of frequently cited barriers to TQM revealed five underlying constructs: 1) inadequate human resources development and management; 2) lack of planning for quality; 3) lack of leadership for quality; 4) inadequate resources for TQM; and 5) lack of customer focus. Moreover, these empirically derived obstacles were found to be significantly related, in varying degrees, to specific potential outcomes that can be used to measure TQM success (or failure). The potential outcomes considered were frequent turnover of employees, frequent turnover of management, the high cost/benefit ratio of implementing TQM, and quality improvement results rarely meeting expectations. This provides a useful framework for evaluating the relative significance of management-related obstacles to TQM success, and, consequently, for providing direction and guidance in developing strategies for an effective quality transformation. Key words: quality managers, survey, TQM barriers, U. S. firms
INTRODUCTION
Over the last decade, the number of survey-based research studies focused on total quality management (TQM) has increased dramatically. Prior to 1993, most research in this area was conceptual or based on case studies. One of the first studies to use a survey-based approach, that of Saraph, Benson, and Schroeder published in 1989, focused on scale development for operationalizing the critical factors of quality management. According to Sila and Ebrahimpour (2002), an examination of the quality literature since then through 2000 reveals that there have been 347 survey-based research articles published. These studies are categorized along several main research objectives that include identifying critical TQM factors, examining issues in the implementation of TQM, and investigating the link between TQM factors and performance. Of primary interest among researchers has been addressing the question What makes TQM work? Since most would agree that the philosophy and principles of TQM are sound, instances of failed TQM initiatives have led researchers to direct their attention to problems associated with its implementation. Consequently, several major research themes concerned with the successful implementation of TQM have emerged. There have been many studies that have focused on the obstacles to TQM (for example, Matta et al. 1996; Ngai and Cheng 1997; Salegna and Fazel 2000). Others have narrowed their view to concentrate on specific barriers to TQM, such as organizational culture (for example, Olian and Rynes 1992; Kuei et al. 1997), management style (for example, Mann and Kehoe 1995), employee factors (for example, Fok et al. 2000), and ineffective project management (for example, Hides et al. 2000). And in order to assess whether
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RESEARCH OBJECTIVES
In this study survey-based research is conducted that focuses on the obstacles associated with managing the TQM transformation. Scale items, based on the obstacles cited in the literature, as well as personal interviews with local managers, include many of the same items used in similar studies (Ngai and Cheng 1997; Salegna and Fazel 2000). Ngai and Cheng (1997) used a 17-item scale to survey quality managers in Hong Kong; Salegna and Fazel (2000) used a 12-item scale to survey company presidents and CEOs in the United States. In this study quality managers in the United States are surveyed using a 25-item scale, similar to those used by these researchers, that includes items dealing with employee empowerment, resistance to change, employee training, resources, strategic planning, and customer focus. This scale also includes some additional items on benchmarking, joint planning with suppliers, and managements compensation. Like previous research, factor analysis is used on the scale items to empirically derive obstacles to TQM. A second objective of this study is a further analysis of the data to examine the relationships between obstacles and several different measures of the perceived success (or failure) of TQM. Four of the items included in this scale can be considered potential outcomes of failed TQM. Other researchers have used two of these items, employee turnover and the high cost/benefit ratio of implementing TQM, to measure TQM success (see Ahmadi and Helms 1995; Guimaraes 1997). The other two items deal with management turnover and perceptions of whether quality improvement results meet expectations. Establishing a link between various obstacles and specific measures of perceived TQM success helps to provide some insight on how to better manage the quality transformation process.
METHODOLOGY Sample
Data for this study were gathered using a mail questionnaire. A national sample of quality control and quality managers was randomly selected from the membership listing of the American Society for Quality (ASQ). A total of 872 questionnaires were mailed (1000 names were initially selected, but those affiliated with firms located outside the United States were eliminated).
Survey Instrument
The questionnaire consisted of four sections, two of which were relevant for this study. The first section dealt with gathering background information, such as job title of the respondent, size of the organization, and whether the firm was involved in TQM. The other section involved obtaining respondents opinions about a series of statements representing both barriers to TQM as well as potential undesirable outcomes (see Figure 2). Respondents to the survey were asked to indicate how true each of these statements was about their organization using a five-point scale (1 = not at all true, 2 = slightly true, 3 = somewhat true, 4 = mostly true, 5 = completely true). These statements were worded both positively and negatively to safeguard against response bias in a specific direction. In order for the results to be comparable across statements, ratings for the positively worded items were recoded before analyzing the data. Thus, a higher mean rating implies a more significant barrier to (or undesirable outcome of) TQM.
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Statement
Statements representing potential undesirable outcomes from failed TQM: 19 21 24 25 Quality improvement efforts rarely meet expectations in terms of desired results. There is frequent turnover of employees. The high costs of implementing TQM outweigh the benefits. There is frequent turnover of management.
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Data Analysis
Exploratory principal components factor analysis was used to determine whether the observed correlations among the 21 items representing barriers to TQM could be explained by the existence of a smaller number of underlying obstacles. Only factors that accounted for a variance greater than one (that is, eigenvalues > 1) were extracted. The rationale behind this approach is that factors with a variance less than one are no better than a single variable, since every variable was standardized and has a variance of one. Varimax rotation, an algorithm that minimizes the number of variables that have high loadings on the orthogonal factors, was used to improve interpretability. To determine how these obstacles relate to the TQM outcome measures, factor scores from the factor
solution were used as input for regression analysis. That is, regression analysis was used to determine which obstacles (independent variables) were perceived as significant in explaining specific potential undesirable TQM outcomes (dependent variables).
Descriptive Statistics
Prior to performing factor and regression analysis, standard descriptive statistics were used to summarize the responses for individual items. While these results have been published elsewhere (see Tamimi and Sebastianelli 1998), some findings are worth noting here. Quality managers perceived not tying managements compensation to achieving quality goals as the most significant barrier to TQM. About two-thirds of the respondents indicated that this was either mostly or completely true of their organizations. It received the highest mean rating of 3.89. This finding lends empirical support to the views articulated by Glover (1993). Receiving the second highest mean rating (3.16) was the item best practices and/or products of other companies are (not) benchmarked. Approximately 36 percent of all respondents replied that this was mostly or completely true of their organizations. It is interesting to note that these two items that received the highest mean ratings have not been included in previous surveybased research on TQM obstacles. The three remaining items rounding out the top five barriers to TQM relate to employees. Two directly involve employee training: employees are not trained in quality improvement skills and employees are not trained in problem identification and problem-solving techniques. These items received mean ratings of 3.11 and 3.08, respectively. The other represents a possible consequence of poor or no employee training: employees are resistant to change. This item received a mean rating of 3.02. The outcome items received comparatively lower ratings. Only about 17 percent of respondents perceived that the statements quality efforts rarely
Factor Analysis
In order to exploit the intercorrelations among the 21 items representing barriers to TQM, factor analysis was performed to identify the underlying constructs. Five factors were extracted that accounted for about 58 percent of the total variation in the observed ratings. Table 1 shows the total and cumulative variance for each extracted factor. Table 2 shows the items that load strongly on each of the five factors. In developing this factor solution, items with loadings less than .35 (after varimax rotation) were dropped.
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Eigenvalue
3.671 2.989 2.214 1.848 1.428
% of Variance
17.5 14.2 10.5 8.8 6.8
Cumulative % of variance
17.5 31.7 42.2 51.0 57.8
Employees are not trained in problem identification techniques. Employees are not trained in group discussion and communication techniques. Employees are not empowered to implement quality improvement efforts. Cross-functional teams are not employed.
All of the items loading on Factor I involve employee training in quality-related skills or employee recognition for achieving quality goals. This composite obstacle is labeled as inadequate human resources development and management. The items that load on Factor II relate to managements lack of quality planning. These items either refer explicitly to planning or to the collection of information and data that are necessary for an effective quality planning process (for example, the item that refers to the benchmarking of best practices and/or products). This factor is labeled lack of planning for quality. Factor III is interpreted as lack of leadership for quality. The items forming this composite seem to deal with the inability of top management to provide the vision and direction necessary for all members of the organization to become committed to quality. Factor IV is made up of items that all relate to the constraints on resources available for effectively implementing TQM. This obstacle is labeled as inadequate resources for TQM. And finally, Factor V comprises the two items that refer to one of the key elements of TQM, its emphasis on the customer. This final obstacle is interpreted as lack of customer focus. To assess the internal consistency of the scales (that is, factors), Cronbachs alpha was computed as a measure of reliability of the derived obstacles. Although the generally acceptable minimum alpha is 0.70, Nunnally (1978) suggests allowing a somewhat lower threshold, such as 0.60 or even 0.50, for exploratory work involving the use of newly developed scales. Reliability analysis results are included in Table 2. All factors had a Cronbachs alpha greater than 0.50.
Regression Analysis
Four items on the questionnaire are considered potential undesirable outcomes of failed TQM (refer to Figure 2). As noted previously, regression analysis
R-squared
.095 .129 .190
.338
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was performed using the resulting factor scores as input (independent variables) for each of these four items. Table 3 summarizes the results for these four regressions, showing which obstacles are statistically significant in each case. The method of model building used was stepwise regression. For the potential outcome there is frequent turnover of employees, only one obstacle was found to be statistically significant. It was Factor I, inadequate human resources development and management. This seems logical. Organizations that wish to pursue TQM and be successful in its implementation need to develop their employees accordingly. Employees need to be trained in group discussion and communication techniques, the basic tools of quality and process improvement, and problemidentification/problem-solving skills. Employees need to be empowered to implement quality improvement efforts, and, when successful, they need to receive appropriate recognition for their achievements. Without such opportunities and a supportive environment, employees might feel frustrated, thereby contributing to more frequent turnover. Two obstacles were found to be significant in explaining frequent turnover of management. They were: 1) inadequate resources for TQM; and 2) lack of leadership for quality. It is difficult for managers to implement TQM practices without top management devoting the necessary resources to the effort. Without
commitment from above, commitment that translates into tangible resources such as time and money, most managers would find it impossible to carry out a TQM directive. TQM programs are often viewed with skepticism, and are destined to fail if they do not get the full support of the entire work force. Organizations that score highly on items such as employees are resistant to change and quality is not everyones responsibility most likely have leaders who have failed at communicating their commitment to quality in concrete ways (for example, preparing employees for changing roles and job responsibilities in a TQM environment). In such environments, managers might see little possibility of success leading to more frequent turnover. In explaining the perception that the high costs of implementing TQM outweigh the benefits, three obstacles were found to be statistically significant. They were: 1) inadequate resources for TQM; 2) inadequate human resources development and management; and 3) lack of leadership for quality. An environment that does not invest in the resources necessary to make the implementation of TQM successful undoubtedly sends the message that the benefits derived from TQM are not worth the cost. This view represents a short-term focus. The benefits from a successful TQM transformation are longer range, and it is top managements responsibility to set the stage for longer-term thinking when it comes to TQM. Improved quality results in
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